Retail Sales Fall 0.8 Percent in January From December as Shoppers Pause After Strong Holiday Season

NEW YORK—Americans pulled back their spending more than expected in January after the traditional holiday season splurge. Retail sales fell 0.8 percent in January from the strong pace in December when they rose a revised 0.4 percent, according to the Commerce Department’s report on Thursday. Excluding sales at auto dealerships and gas stations, sales were down 0.5 percent. The decline was bigger than the 0.10 percent drop that economists expected and marked the lowest monthly figure since March of last year. Economists attributed part of the pullback to snowy weather conditions, but they also said the slowdown shows that shoppers may finally be buckling under higher interest rates and other financial hurdles and that the economic momentum from the end of 2023 could be starting to fade. Excluding sales of autos, gas, building materials, and restaurant meals, the so-called control group of sales—which is used to calculate economic growth—fell 0.4 percent in January. Economists expected an increase....